Mark B. Wildermuth

Energy MLP Mgt Qrtrly Earnings Call Highlights


NGL  Energy Partner's  opening comments prior to reporting results on the low end of Guidance:


"The  sector has emerged from the recent challenges and there are significant  upside to our business. Obsessing over a quarter's numbers rather than  the next three to four years' projected EBITDA just doesn't make any  sense."


On Eagle Ford Volumes "We see signs of improvement in the Eagle Ford  as well with an expectation that drilling activity will increase as we  inch closer to $60 crude prices."


Plains All American on  Drilling Lag: 


"As we discussed recently, drilling activities have picked  up and there're other very encouraging signs on horizon. But I would  note there will be a time delay before our transportation volumes and  gathering margins will reflect the benefits of this increased activity.  And we anticipate the first six to nine months of 2017 will be  challenging"


On Logistics Margins: 


"We just seen a intense amount of competition.   We've probably given 65%, 70% plus of the margin just because of  competition out there"


"I don't think there's going to be a large opportunity again for its  existing capacity. I think most everybody has tweaked the capacity  increases that are available. We think second half of next year of 2017  you could start seeing enough crude. We think by second half of the  year, we should start seeing more of a balance between the MVCs and the  crude available for, basically for the market."


On a Border Adjustment Tax with Mexico: 


"We think it will have the  biggest impact on obviously and these are refiners unless there is an  exclusion there, how it affects them will create both opportunities and  headaches for mid-stream. But we get paid to move barrels. And whether  it's an imported barrel or a domestically produced barrel, I think we’re  indifferent


Buckeye Partners  on Border Adjustment Tax:  


"I think a lot needs to take shape  before anyone can really give you a precise answer on that. But I think  with the work that we’ve done looking at our asset base in our business,  I think in the long term it is probably a fairly marginal impact  net-net on the business."


On Trafigura's Splitter Termination with Magellan Midstream:


"We are  aligned. We have a great relationship with Trafigura, they are a 20%  owner in our South Texas hub and we have worked really well with them  and continue to work well with them."


Q4 Distributions Announced This Week

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